Q: please see below
I own 51% of a marine contracting company. The company owns several tug boats and other pieces of marine equipment.
Can I gift one of the tug boats to another company which I own 100% of. Once the transaction is complete, can I then lease the tugboat back to the original company which gifted the tug to me, and collect a monthly income from the original owner?
Thank you for your response.
A: You may do what you propose...but the proviso is that there are likely tax consequences to your proposal...You should be communicating with a tax specialist and/or accountant...
Randy Bryan Ligh agrees with this answer
A: As Mr. Ferro points out, it could be beneficial to consult with an accountant on this. It looks like a somewhat more complex matter than many of the usual Admiralty/Maritime questions that make their way here in terms of boating and cruise ship cases. You could also consider reviewing the matter with an experienced business law/corporate law attorney to see if the arrangement is an acceptable one - it's possible they could have better insight into something like this than the maritime attorney who limits their practice to Jones Act, salvage, cargo, and things along those lines. Good luck
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